If you’re seeking to register an organization in Guatemala, the method includes 5 key steps, as outlined beneath.
Many traders launching out there for the primary time search the help of an organization formation agent in Guatemala, who will have the ability to supply steering on the very best sort of entity to go well with their wants and use their knowledgeable data to finish the enterprise formation course of in probably the most environment friendly method potential.
Guatemala is the biggest financial system in Central America, and among the many high ten economies in Latin America, with a GDP that hit $85.99 billion in 2021 (all figures in USD). That very same 12 months, gross nationwide earnings (GNI) – a key prosperity marker – reached $4,940 per capita, putting the nation as an upper-middle earnings nation according to standards established by the World Bank.
SEE ALSO: Do you want a PEO in Guatemala?
Notably, Guatemala registered GDP progress in 2020, when many different economies on this planet contracted because of the COVID-19 pandemic, and the one 12 months it has registered a decline over the previous twenty years was throughout the 2008 international monetary disaster.
The nation’s robust financial efficiency over current years has made it an increasingly attractive destination for foreign direct investment (FDI), which has equally continued to develop, as highlighted by the truth that FDI has consistently represented between 1.3% and 2.9% of GDP all through these years of robust GDP progress.
A part of the growing attraction of Guatemala as an funding vacation spot can also be right down to the truth that it has had success in coping with its as soon as notoriously excessive ranges of violence – with intentional homicides more than halving since 2009.
The nation additionally advantages from having a extremely strategic location, dominating Mexico’s southern border, and forming a gateway between the three main economies of North America and the remainder of Central America.
Guatemala has high-volume ports serving each the Pacific Ocean and the Caribbean Sea, providing simple freight entry to the remainder of the Americas, in addition to Asia-Pacific and Europe.
Espresso, bananas, and sugar are amongst among the key exports from Gautemala’s famously giant agricultural sector, which generates almost 10% of GDP. Manufacturing – with an enormous garment producing trade at its middle – contributes 22% of GDP.
The nation’s fast-growing companies sector, in the meantime, is liable for 60% of GDP.
Entity varieties if you register an organization in Guatemala
One of many first decisions you’ll need to make if you register an organization in Guatemala – and which an organization formation agent will have the ability to help you with – is which sort of entity to determine.
Relying on the character of your small business and the way you propose to construction it, among the almost definitely choices embody:
Restricted legal responsibility firm (sociedad de responsabilidad limitada)
With a restricted legal responsibility firm, participation shouldn’t be measured in shares, however in contributions from companions, with every companions’ legal responsibility restricted to the capital they’ve contributed to the corporate. Companions will not be personally responsible for the money owed that the corporate might face.
Different traits and necessities to register an organization in Guatemala:
- For such an entity, a minimal of two and a most of 20 companions are allowed, and they are often people or authorized entities.
- Such an organization will need to have an authentic identify to commerce beneath, which by regulation should additionally embody the phrases ‘restricted firm’ (which can be abbreviated).
- Such an organization can’t have an industrial companion (article 82 of the Business Code).
This sort of firm is mostly chosen for small firms resulting from its necessities and traits, nevertheless even these are inclined to type as companies..
Company (sociedad anónima)
For a company, participation is predicated on shares, with shareholder legal responsibility restricted in line with the variety of shares they maintain. An organization’s total legal responsibility can also be restricted to the property it holds. Forming a company in Guatemala is completed through the execution of a public deed, which have to be registered on the nation’s Business Registry and within the Superintendency of Tax Administration.
Different notable traits of a company in Guatemala embody:
- Excessive ranges of privateness for shareholders and their conferences
- The necessity to appoint a authorized consultant in Guatemala (native or international, with a Guatemalan Tax ID)
- Contributions for capital formation might be in money
- The identify of the corporate should embody the phrase company (which might be abbreviated as “S.A.”).
- Shareholders might be nationals or internationals, people or authorized entities.
Department of a international firm
If you have already got a enterprise elsewhere, if you register an organization in Guatemala, another choice to contemplate is forming a international department.
So as to take action, you’ll need to nominate a authorized consultant in Guatemala, who’s a citizen or authorized resident based mostly within the nation, and who could have the authorized authority to behave on the corporate’s behalf.
The method of deciding to register an organization in Guatemala includes submitting paperwork from the father or mother firm which were correctly legalized (apostilled or equal), in addition to registering with varied state entities within the Central American nation. It’s value considering that these necessities imply the method can usually take longer than establishing the aforementioned entity varieties.
Register an organization with the assistance of an organization formation agent in Guatemala
For a lot of international traders seeking to register an organization in Guatemala, one of many largest obstacles they face is lack of familiarity with the native market, as properly the language barrier confronted by anybody who doesn’t converse Spanish.
An organization formation agent in Guatemala is ready to assist overcome each of these points, guiding you thru the method of creating a enterprise in probably the most environment friendly method potential.
While you contract a supplier to behave as firm formation agent that additionally gives different again workplace companies, you’ll be able to moreover obtain help with the likes of accounting, recruitment, and ongoing authorized issues past these concerned within the technique of getting your small business off the bottom.
How you can register an organization in Guatemala
While you register an organization in Guatemala, supported by an organization formation agent or in any other case, you could undergo the next 5 steps:
1. Select the kind of entity
Based mostly in your wants and the best way you propose to construction your small business, you’ll first want to decide on which sort of entity to register.
2. Register an organization in Guatemala with an acceptable identify
You will want to undertake a examine in an effort to assure that the corporate identify you want to use shouldn’t be already in use or too just like an present firm, in addition to embody the entity sort within the identify, the place that may be a authorized requirement.
3. Decide the quantity of preliminary share capital and open a company checking account
An preliminary capital funding might be vital to determine the corporate, and might be deposited within the firm’s provisional company financial institution to begin the method of its incorporation.
4. Set up the bylaws of your organization
Working by means of a public notary, the entire inner rules that may govern the operation of the corporate have to be decided and specified by a doc signed by all shareholders, both in individual or by means of an influence of legal professional (POA).
5. Registration of the corporate earlier than Guatemalan state entities
In an effort to adjust to the regulation and the formalization of the corporate, it’s essential to register it publicly in order that it may possibly function legally. All entities have to be registered on the Mercantile Registry and the Superintendency of Tax Administration.
Widespread questions when forming an organization in Guatemala
In response to our expertise, these are the most typical questions and doubts of our Purchasers about firm formation in Guatemala.
Guatemala is taken into account good for enterprise resulting from its strategic location, pure sources, younger and rising inhabitants, and efforts to enhance the enterprise atmosphere.
lt takes between 8 to 10 weeks to type an organization in Guatemala in any case required data and documentation have been supplied.
Sure, a foreigner can personal a enterprise in Guatemala.
In Guatemala, “SA” stands for “Sociedad Anónima,” which has similarities to a joint-stock firm.
It requires a minimal of two shareholders to type an organization in Guatemala.
Biz Latin Hub will help you register an organization in Guatemala
At Biz Latin Hub, we offer market entry and again workplace companies all through Latin America and the Caribbean, with greater than a dozen workplaces across the area, together with in Guatemala Metropolis.
Our portfolio of companies consists of firm formation, accountign & taxation, authorized companies, checking account opening, and hiring & PEO, and our unmatched regional presence means we’re ideally positioned to help multi-jurisdction market entries.
Contact us right now to search out out extra about how we are able to help you doing enterprise.
In case you discovered this text on the right way to register an organization in Guatemala helpful, take a look at the remainder of our protection of Central America. Or examine our group and knowledgeable authors.
The data supplied right here inside shouldn’t be construed as formal steering or recommendation. Please seek the advice of an expert on your particular state of affairs. Data supplied is for informative functions solely and should not seize all pertinent legal guidelines, requirements, and greatest practices. The regulatory panorama is regularly evolving; data talked about could also be outdated and/or may bear modifications. The interpretations introduced will not be official. Some sections are based mostly on the interpretations or views of related authorities, however we can’t make sure that these views might be supported in all skilled settings.